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LONDON MARKET EARLY CALL: Higher Call As Biden Wins US Presidency

Mon, 09th Nov 2020 06:55

(Alliance News) - Stock prices in London are seen opening higher on Monday as Joe Biden was declared the winner of the US presidential election over the weekend.

IG futures indicate the FTSE 100 index is to open 75.48 points higher at 5,985.50. The blue-chip index closed up 3.84 points, or 0.1%, at 5,910.02 Friday.

US President-Elect Biden took the first steps Sunday towards moving into the White House in 73 days, as Donald Trump again refused to admit defeat and tried to sow doubt about the election results.

With congratulations pouring in from world leaders and supporters nursing hangovers after a night of celebrations, Biden and Vice President-Elect Kamala Harris announced they would receive a joint briefing on Monday in Wilmington, Delaware from their transition Covid-19 advisory team.

Trump, who has no public events scheduled for Monday, plans to file a string of lawsuits in the coming week, according to his lawyer Rudy Giuliani, who said he had "a lot of evidence" of fraud.

Biden urged unity on Saturday and promised "a new day for America" in his first national address since he won the tense US election and ended the historically turbulent and divisive era of Trump. The victory speech followed a desperately bitter election conducted in the midst of the coronavirus pandemic.

The Japanese Nikkei 225 index closed up 2.1% on Monday. In China, the Shanghai Composite is up 1.7%, while the Hang Seng index in Hong Kong is 1.3%. The Japanese benchmark index ended at its highest level since 1991.

"While President Trump still appears to be in denial about the loss of the presidency to the Democrats and Joe Biden and still refusing to concede, markets appear to be unconcerned about the prospect of a contested outcome, and now appear to have moved on to what might happen next," commented CMC Markets analyst Michael Hewson.

"This week looks set to see a positive start to the week in Europe after a similarly positive Asia session saw the Nikkei 225 hit its highest levels since 1991, while Chinese markets also rallied on the hope that trade tensions, between the US and China could well start to diminish in 2021," Hewson added.

China's imports grew 4.7% and exports rose by 11% year-on-year as its economy continued to recover from the coronavirus pandemic, according to October customs data released on Saturday. As a result, its October trade surplus widened to USD58.44 billion from September's USD37.00 billion.

China has largely managed to control the virus after a disastrous start to the year that saw Beijing lock down tens of millions of people and the economy contract 6.8% in the first quarter. The new figures from China's General Administration are the latest sign of China's economic recovery as consumption returns to normal levels.

In the US on Friday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.2%, S&P 500 flat and Nasdaq Composite closing 0.3% higher.

The pound was quoted at USD1.3174 early Monday, flat from USD1.3172 at the London equities close Friday.

UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed during a phone call on Saturday to "redouble efforts" to reach a trade deal and signed off on talks continuing next week.

Downing Street said the PM told his Brussels counterpart that there remained "significant differences" in the UK-EU negotiations, with the two sides continuing to be apart on their positions over fishing rights and a level playing field agreement.

The call follows two weeks of intensified talks between the UK's chief negotiator David Frost and his EU equivalent Michel Barnier, with Johnson and von der Leyen paving the way for further discussions between the pair in London next week.

The euro was priced a USD1.1889, flat from USD1.1887. Against the yen, the dollar was quoted at JPY103.52, down from JPY103.71.

Brent oil was trading at USD40.50 a barrel Monday morning, up from USD39.66 on Friday evening. Gold was quoted at USD1,960.72 an ounce, higher than USD1,952.40.

In the economic calendar this week, a quiet Monday is headlined by German trade balance data at 0700 GMT, while China inflation data is due early Tuesday. On Thursday, there is Uthe K trade balance and German consumer price index data at 0700 GMT, followed by US consumer prices at 1330 GMT. Friday is headlined by eurozone GDP data at 1000 GMT and US producer prices at 1330 GMT.

In the UK corporate calendar on Monday, upstream oil company Kosmos Energy and online travel agent On The Beach will issue trading statements. Funeral services provider Dignity will release third-quarter results.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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